Mobile Money by T-Mobile Brings Un-Carrier Approach to Banking

The un-carrier on Wednesday unveiled Mobile Money by T-Mobile, a pre-paid debit card that it said will transform smartphones into personal money managers.

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T-Mobile is getting into the personal finance business. The un-carrier on Wednesday unveiled Mobile Money by T-Mobile, a pre-paid debit card that it said will transform smartphones into personal money managers.

The idea, T-Mobile said, is to free consumers from "excessive fees" from services like check-cashing businesses.

"Millions of Americans pay outrageous fees to check cashers, payday lenders and other predatory businesses  just for the right to use their own money. Mobile Money shifts the balance of power for T-Mobile customers and keeps more money in their pockets," T-Mobile CEO John Legere said in a statement.

Register for a T-Mobile Visa Prepaid Card on the carrier's website now, or pick one up at a T-Mobile store. They will also be available in Safeway grocery stores starting next month. Add money, activate the card, and make purchases like you would with a normal bank-issued credit or debut card.

"Mobile Money levels the playing field to put money back in consumers' pockets for important things  like bills, groceries or vacations," Mike Sievert, chief marketing officer for T-Mobile, said in a statement. "The typical household using a check casher to cash their paychecks could save about $1,500 per year, and customers tired of getting hit with overdraft fees can switch and save an average of $225 a year."

T-Mobile insisted that the move does not mean it is now a bank. "But, we don't think it's fair for banks to charge our customers lots of high fees, so we've found a way to do it better," the carrier said in a FAQ.

With a pre-paid card, customers do not have to submit to a credit check, and they can spend only what is deposited on the card.

For the most part, there are no fees - purchase, reload, monthly maintenance, or withdrawals at in-network ATMs. But "non-typical use" could incur fees - like having a personalized card shipped overnight, expediting a bill payment, or using an ATM outside of the network. Check for available ATMs on T-Mobile's website.

You do not have to be a T-Mobile customer to use the service, "but we save the best benefits for our customers," the company said. "There are other ways you can get your monthly fees waived, but the easiest way is to be a T-Mobile customer."

With the Mobile Money app for Android and iOS, meanwhile, users can take photos of checks and deposit into their accounts, pay bills, add funds like government benefits, check balances, transfer funds to other cards, and find ATMs.

Last year, Sprint's Boost brand took a similar approach with Boost Mobile Wallet, a bank-like service based on cell phones.

For more, check out PCMag Live in the video below, which discusses T-Mobile distributing Visa debit cards for "Mobile Money."

Chloe Albanesius has been with PCMag.com since April 2007, most recently as Executive Editor for News and Features. Prior to that, she worked for a year covering financial IT on Wall Street for Incisive Media. From 2002 to 2005, Chloe covered technology policy for The National Journal's Technology Daily in Washington, DC. She has held internships at NBC's Meet the Press, washingtonpost.com, the Tate Gallery press office in London, Roll Call, and Congressional Quarterly. She graduated with a bachelor's degree in journalism from American University...
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